2026 CDBG

Community Development Block Grant (CDBG) – FY 2026 Application Notice & Instructions The City of Hot Springs invites all interested and eligible parties to submit applications for funding under the Community Development Block Grant (CDBG) Program, funded by the U.S. Department of Housing and Urban Development (HUD). The City of Hot Springs is an entitlement grantee of federal Community Development Block Grant (CDBG) funds under Title I of the Housing and Community Development Act of 1974, as amended. As a CDBG entitlement community, the City funds eligible affordable housing, community development, public service, and economic development projects that primarily benefit low- and moderate-income persons and meet HUD national objectives and City priorities. Application Structure & Submission Guidance Applicants may submit more than one application, as needed. Each proposed project must be submitted as a separate, discrete application. Do not combine multiple projects or activities into a single application. Each application will require: 1. A completed online application form 2. A project-specific budget uploaded using the required CDBG budget template (Excel format) 3. Supporting documentation and organizational materials as prompted throughout the application Applications that include multiple project types or scopes within one submission may be deemed incomplete or ineligible. Application Types Applicants must select one of the following application types for each submission: 1. Municipal Projects on Public Property (City-sponsored infrastructure, facilities, or public improvements) 2. Non-Municipal Projects or Public Services (Eligible nonprofit or partner-led public service or community development activities) 3. Housing (Owner-occupied rehabilitation, affordable housing development, or housing-related activities) 4. Job Growth / Economic Development (Eligible economic development activities that meet CDBG national objectives) Technical Notes for Applicants Please note: due to the structure of the online application system and the inclusion of four distinct application types, applicants may notice visual gaps or spacing issues within the application screens. If you encounter these formatting issues: Please continue scrolling to the bottom of the page, as all required fields and submission buttons are present. These visual gaps do not impact your ability to complete or submit an application.

CDBG projects must meet a HUD National Objective and benefit low-to moderate-income persons. Contact CDBG Administrator Sarah Delozier at sdelozier@hotspringsar.gov to discuss eligibility guidelines and grant requirements before completing an application. This application period does not include funding for projects located outside of the city of Hot Springs, operating expenses, indirect costs, inherently religious activities, political activities, maintenance and upkeep, purchase of personal property that is not a permanent structural fixture, certain improvements on private property, purchase of plants/trees, cosmetic, luxury, or decorative items, government buildings except for the removal of architectural barriers, or other ineligible activities as specified in the Code of Federal Regulations 24 CFR 570. All applications must satisfy HUD national objectives, City of Hot Springs Consolidated Plan objectives, and National Environmental Policy Act requirements, and are subject to review and approval by the City Board of Directors, the Department of Housing and Urban Development (HUD), and Congress.

Application Review Procedures: 1. The City Planning & Development Department is responsible for receipt and pre-screening of CDBG applications in order to determine basic eligibility with federal grant guidelines. 2. Eligible applications are then reviewed by City departments to examine cost estimates, need, feasibility, opportunities to leverage with other projects, overall benefit, staff capacity, ongoing maintenance requirements, Historic District Planning Commission review requirements, land use/zoning changes, infrastructure, alignment with plans, and other factors. 3. Eligible applications are then reviewed by the Community Development Advisory Committee (CDAC) during a public hearing. It is anticipated that this hearing will be held March 6, 2026. Each applicant must have an authorized representative at the meeting to present application(s) and answer questions. 4. Since annual appropriations may not be announced at the time applications are presented, CDAC may make a priority list recommendation to the City Board of Directors for consideration. 5. The Board will hear public comment before submission of a plan to HUD. Applicant contacts will be notified when that meeting is scheduled. Attendance is encouraged but not mandatory. 6. The City Planning & Development Department will then begin NEPA Environmental Reviews on the first projects on the priority list. 6a. The City’s 2026 CDBG allocation may be less than the list of projects. In that case, projects will be funded in priority list order up to the total amount of the 2026 allocation. Projects in excess of the 2025 allocation will be placed in contingency status to be reconsidered if additional funding becomes available during the 2026 program year. 6b. It is also possible that projects will not meet NEPA Environmental Review requirements or receive HUD final approval, and therefore will not receive CDBG funding. In this case, the project will be ineligible for further consideration and the next project(s) on the contingency priority list, in an amount equal to the ineligible project(s), will be considered. Additional review and approval steps may apply to projects on the contingency list. 7. After the amount of funding is announced, an Annual Action Plan including the list of projects to be funded will be developed and reviewed at Community Development Advisory Committee (CDAC) and Board of Directors’ meetings. Applicant contacts will be notified. Attendance is encouraged but not mandatory. 8. Board approved and environmentally reviewed applications will then be submitted to HUD for review and approval as part of the FY2026 Annual Action Plan and Request for Release of Funds. 9. HUD approval is not guaranteed. Under no circumstance will applicants be reimbursed for any costs incurred prior to-or without HUD final approval.